Chow Tai Fook reports profit slump
Hong Kong-based jeweller Chow Tai Fook says net profit for the year to March declined 13.2 per cent, citing weak retail sentiment and slower wholesale business.
According to its filing, net income decreased from HK$6.34 billion a year ago to HK$5.51 billion (US$710 million).
Revenue in the mainland China decreased 5.3 per cent while same store sales in Hong Kong, Macau and other Asian markets fell 3.7 per cent.
During the period, Chow Tai Fook opened 192 jewellery stores and seven watch stores in the mainland China and eight in Hong Kong and Macau.
“Chow Tai Fook has experienced a challenging year in FY2013,” says chairman Henry Cheng.
While Chow Tai Fook expects macro-economic environment to remain uncertain, it remains optimistic about business with plans to expand into third-tier and lower-tier cities, optimise product offerings and continue to be innovative in e-commerce.
“The management has carefully set out its strategic focus for the next year, and is confident that Chow Tai Fook is well positioned to continue to tap into the huge market potential in the mainland China,” it says.
The jeweller plans to add 200 new stores this year, says MD Kent Wong.
It currently has more than 1800 stores in Greater China, Singapore and Malaysia, besides its growing e-commerce business.